Keeping the city afloat

Marine Highway one of reasons port will still be economic boon

STOCKTON - The Port of Stockton, now in its 80th year of linking California's Central Valley with the world via ocean transport, reported 2012 as another strong post-recession year with increases in both shipping activity and income.

STOCKTON - The Port of Stockton, now in its 80th year of linking California's Central Valley with the world via ocean transport, reported 2012 as another strong post-recession year with increases in both shipping activity and income.

The port saw close to 2.9 million metric tons of cargo cross its docks last year, up from nearly 2.8 million metric tons in 2011. (A metric ton is about 2,200 pounds.)

That's up from the recessionary low of 1.3 million metric tons in 2009. At its pre-recession peak in 2006, the Port of Stockton moved nearly 6.5 million metric tons of cargo, which included nearly 2.2 million metric tons of cement demanded by the construction boom.

In addition to renewed maritime activity in 2012, the port also saw increased income from land and warehouse leasing, primarily from the former Navy base on Rough and Ready Island acquired in 2000.

"We did have a very good year," said Richard Aschieris, port director.

In fact fiscal 2012, which ended June 30, was a record year with revenues totaling $40 million.

And that continued in the second half of calendar 2012 as well, Aschieris noted.

In the past 25 years, the port has recorded only 10 months with $3 million or more in revenues. Four of those were in the first half of 2012 and two in the second half.

"What's helpful now is we're more diverse, because through the years we've been able to develop our real estate on Rough and Ready Island," Aschieris said.

The port is a bright spot in the region's economy, said Jeffrey Michael, director of the Business Forecasting Center at University of the Pacific.

"It's growing, which is good because as you know the last decade hasn't exactly been a period of strong growth in our local economy," he said. "The port is one thing you can point to that is trending in the opposite direction. It is also something you can point to that has a lot of potential for growth."

Even after a decade of development, the port continues to light its vacancy sign.

"They still have a significant amount of well-located industrial land," Michael said.

The port benefits from access to rail and highway transportation, as well as water transport, which includes a newly developed cargo container-capacity, the so-called Marine Highway, to barge goods between Stockton and the Port of Oakland, Northern California's main container ship terminal.

"It's a huge asset," Michael said.

The port operates as a special district, overseen by board members appointed by the Stockton City Council and San Joaquin County Board of Supervisors. While it has the authority to tax, it is entirely funded by fees collected from its cargo operations and property leases.

Its mission is to provide an engine for the region's economy.

To that end, the port continues to invest in its infrastructure. In 2012, that included construction of a $7 million overpass, carrying the Port of Stockton Expressway over a set of train tracks.

That project improved truck access between Rough and Ready Island and Highway 4 to the south.

Also, the port installed $1.8 million of rail improvements, boosting its transport capacity. Aschieris said that will allow the port to handle as many as six iron ore or coal trains per week, up from the previous three per week.

And the port is actively seeking additional state and federal funds for more rail upgrades.

"What I'm looking to do is increase the volume of things we've started before, such as the iron ore and the coal (exports)," Aschieris said.

The result is the port created 224 jobs in 2012, including those generated by the road and rail construction work, as well as the arrival of new commercial tenants at the port.

One example is BlueLinx Corp., a building products distributor, which leased a warehouse and land at the port where it is relocating its regional distribution center, and about 50 jobs, from the Bay Area.

That's part of the nearly $2 billion in investments the port has attracted in the past five years.

"The private sector has ... and is continuing to invest (in the port) and create jobs locally," Aschieris said.